Fundamental analysis of the GameStop investment case might seem pointless. But these numbers do offer a valuable lesson for the company’s newest followers.
Is there anything in the GameStop (NYSE:GME) financial results which justifies even a small part of the enthusiasm for the stock?
Management claims that comparable store sales climbed 6.5 per cent in the final quarter and the like-for-like decline can be blamed on a smaller estate - but that’s a weak argument to make when video game sales have been moving online for years. Indeed, is an online store even necessary in the future of the market as gaming moves into the cloud?